MOV JieDai protocol is a crypto asset charge protocol primarily based on the Bytom predominant chain and Bytom layer2 Vapor facet chain. Merely put, MOV truly realizes the lending service like a financial institution by way of a wise contract primarily based charge algorithm mannequin. Customers can deposit, withdraw, and lend to earn curiosity. After all, not like the credit score threat of conventional finance, outsized loans adopted by MOV can scale back the chance of on-chain default.
The benefits of MOV JieDai
Immediate mortgage and reimbursement, instantaneous deposit and withdrawal
MOV is predicated on the excessive efficiency Vapor sidechain, which has instantaneous affirmation. Depositors can withdraw principal and curiosity instantly after depositing cash, whereas debtors can shortly return borrowed cash and safe collateral.
No on-chain buying and selling charges, no deposit service charges
In comparison with borrowing and lending on Ethereum, MOV doesn’t cost any on-chain buying and selling charges for borrowings and deposits. On the similar time, solely 10% of the curiosity on the borrowed cash is charged as a platform service charge, and the deposit isn’t charged any charges.
The world’s first DeFi public mortgage public sale instrument
The world’s first product interface helps liquidation asset public sale, reducing the utilization threshold, and bizarre customers can take part, and winners are chosen by way of a random algorithm to make sure effectivity and fairness.
Separation of the JieDai pool and the assure pool to cut back threat
The JieDai MOV pool is separated from the collateral pool and the collateral pool can not be used for loans, which enormously reduces the chance and prevents one pool from affecting different swimming pools.
The place does the revenue come from?
Like conventional finance, the revenue of customers who deposit cash is ensured by the curiosity of customers who borrow cash. JieDai pool is allotted primarily based on the proportion of cash deposited by every deposit consumer in addition to curiosity. The variable rate of interest underneath totally different market provide and demand circumstances could be constructed by way of the phase operate, which may flexibly reply to excessive conditions.
Liquidation and public sale
MOV adopts the mechanism of over-collateralized loans and, in excessive instances, can present some solvency by liquidating the collateralized property.
MOV units a liquidation line to find out whether or not to liquidate. By evaluating the assure charge and the liquidation line, it units the evaluation ranges of risk-free, low-risk, high-risk and notifies the consumer in time when a change in threat happens.
When it reaches the liquidation line, the system robotically auctions the secured property. Because the consumer has already obtained a reminder by way of a number of mechanisms, he’ll not outline a buffer interval however will public sale it straight.
MOV introduces a random algorithm into the clearance protocol, and the likelihood of every bidder’s bid is equal. On the similar time, due to the margin system, malicious bidding is prevented.
It needs to be talked about that MOV will present the primary user-friendly public sale interface instrument within the DeFi enviornment. Strange customers can take part within the public sale, and with a sure mechanism making certain the identical likelihood and alternative as API customers, it’ll additional enhance the effectivity of the public sale.
MOV JieDai ensures the security of the system and customers’ funds by way of oversizing, separation of mortgage pool and collateral pool, all-weather trade charge monitoring and threat administration system.
Over-collateralization is a typical follow in at present’s DeFi lending trade. As a result of the blockchain has a sure diploma of anonymity, it’s tough to pursue legal responsibility for breach of contract solely by way of credit score loans. Present mortgage merchandise corresponding to AAVE and Compound will combine the collateral pool with the mortgage pool, i.e. the consumer’s collateral will go into their corresponding mortgage pool, and the collateral can proceed for use as mortgage product. Whereas the effectivity is improved, it additionally permits the system to take extra threat and customers returned the borrowed elements however couldn’t get the guarantee again. MOV separates the 2 and the collateral is not on mortgage as a mortgage asset, making certain that the borrower can get their collateral again instantly after reimbursement.
MOV will monitor the trade charge in actual time across the clock, discover the property that attain the c liquidation line on time, and liquidate to make sure enough funds within the mortgage pool.
On the similar time, MOV and SlowMist have entered into strategic cooperation to collectively defend the safety of MOV.
In comparison with current mortgage merchandise on Ethereum, MOV has pure benefits when it comes to efficiency and value. On the similar time, due to the innovation, it additionally has many constructive factors when it comes to clearance and security. By way of the cross-chain, MOV additionally integrates the ecosystems of BTC, LTC, DOT, complementing the mortgage merchandise of the non-Ethereum ecosystem.